Bitcoin price goes sideways as on-chain signals improve, report says

After recently reaching the US$ 98 thousand region, Bitcoin went through a correction and returned to trading below US$ 90 thousand.

According to the latest report Weekly Market Pulse, According to a report published on Monday (19) by Glassnode, this movement does not represent a deterioration in the trend, but a consolidation period, with a gradual improvement in the market's internal indicators.

According to Glassnode analysts, the weakening of the market's momentum is visible in the 14-day RSI, which has retreated but remains above the neutral zone. For the company, this suggests a loss of buying power, typical of markets that pause after strong upward movements, rather than a clear sign of reversal.

Reduced sales pressure

On the spot market, the data analyzed by Glassnode indicates initial signs of demand recovery. Trading volume increased moderately, while the imbalance between buy and sell orders broke through the upper statistical range, indicating a significant drop in sales pressure.

Despite this, the analysts point out that spot demand is still considered to be fragile and irregular, This reinforces the reading of a market in transition, still far from a phase of euphoria or speculative excess.

Derivatives see an improvement in the balance between buyers and sellers

In the derivatives segment, the report points to a mixed scenario. O open interest in futures contracts increased slightly, indicating a gradual resumption of speculative interest. At the same time rates funding fell sharply, This signals less demand for leveraged long positions.

For analysts, this behavior reflects a more cautious market, with traders reducing more aggressive bets on BTC's rise. Even so, the weakening of the seller flow in perpetual contracts suggests a improved balance between buyers and sellers, This could favor price stability.

The derivatives market brings together financial instruments whose value derives from the price of Bitcoin, such as futures, perpetual contracts and options. Unlike the spot market, where the asset is bought or sold directly, in derivatives investors negotiate expectations about the future price.

ETFs lead return of institutional interest

One of the most important points of the report is Bitcoin spot ETF flows in the United States. According to Glassnode, the funds registered a strong reversal, in just one week, from a net outflow of around US$ 1.3 billion to an inflow of around US$ 1.7 billion.

For analysts, this move signals renewed institutional interest and resumption of accumulation, However, the high level of profits made by ETF holders increases the risk of realizations in the short term. The significant increase in the trading volume of these funds reinforces the view that traditional capital is participating more in the market.

On-chain activity stabilizes

In the on-chain field, the data analyzed shows a scenario of gradual stabilization. The number of active addresses, the volume transferred and the fees paid on the network showed moderate growth. At the same time, net capital outflows slowed, indicating less structural selling pressure.

The study highlights, however, that the growing participation of short-term investors makes the market more sensitive to price changes, This increases the potential for volatility without necessarily indicating a cycle top.

Conclusion

In the analysts' final assessment, BTC remains at a consolidation phase, The current situation is marked by caution and defensive positioning. Even so, the progressive improvement in domestic indicators, combined with the resumption of institutional flows via ETFs, suggests a gradual reconstruction of a more optimistic market structure.

According to the report, although short-term risks remain, the set of data points to an environment that is more constructive than deteriorating, with fundamentals that can sustain future movements if demand continues to strengthen.

Want to learn more about on-chain data analysis? Read the article “How to use on-chain analysis tools to know when to buy bitcoin”.